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Creating Cost of Production Budgets, it’s as Easy as ABC with the Ag Budget Calculator

Glennis McClure and Larry Van Tassell

Summary

Enterprise budgets that provide customized cost of production information for producers are valuable to making management decisions that assist in reducing risks on the farm. Especially in a year where input costs and investments are higher, yet with grain marketing opportunities that should provide profitability, cost and revenue projections should be well worth the time to create.  

This presentation will provide an update on the features of the new online Agricultural Budget Calculator (ABC) program under development at the University of Nebraska – Lincoln. ABC’s user-friendly design and online accessibility make it a budgeting and decision resource for small and beginning farmers and for those that are underserved.  

Through in-person and virtual workshops, producers, bankers, and farm managers are currently able to download the 2022 University crop budgets and use the program to modify those budgets or to create their own from scratch. In addition, a risk module, breakeven, and sensitivity reports are built into the program, along with a whole farm component that provides for expense reconciliation and allocation of overhead expenses to an operation’s enterprises. ABC is an excellent teaching resource to use when educating producers on the importance of cost of production budgeting and the uses of such information. In this session, we’ll share how the budget calculator works for users, analysis, and reports that can be generated from it, and how it has been utilized to date with current evaluation and impact information provided.

Details

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